7 Common Pieces Of Financial Wisdom You Shouldn't Follow

Libby Kane, provided by

Published 11:06 am, Monday, June 9, 2014

Photo: Mike Lauterborn

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1. It takes money to make money.

"This phrase is limiting at best and destructive at worst," says Siebold. "The truth is you have to have great ideas that solve problems to make money. If you do, you will attract money like a magnet. Wealthy investors are always on the lookout for the next big investment they can sink their teeth into."

"This phrase is limiting at best and destructive at worst," says Siebold. "The truth is you have to have great ideas that solve problems to make money. If you do, you will ... more

Photo: Mike Lauterborn

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2. Money doesn't grow on trees.

"This belief sets people up to believe money is scarce and difficult to earn, instead of seeing money as abundant," explains Siebold. He says that we should consider earning our own "as easy as solving a problem through persistent, creative thought."

"This belief sets people up to believe money is scarce and difficult to earn, instead of seeing money as abundant," explains Siebold. He says that we should consider earning our ... more

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3. Another day, another dollar.

"The masses trade time for money," says Siebold. "This creates the belief that making money is a linear process directly connected to time." But, he continues, earning a lot of money requires breaking out of the linear mindset — not simply working more hours.

"The masses trade time for money," says Siebold. "This creates the belief that making money is a linear process directly connected to time." But, he continues, earning a lot of ... more

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4. Money is the root of all evil.

"The real saying is actually 'the love' of money is the root of all evil, but it has been misquoted for centuries that most people believe money itself is the root of all evil," clarifies Siebold. "Decide to be proud of your ambition, and ignore people who tell you that wanting to be rich is wrong."

"The real saying is actually 'the love' of money is the root of all evil, but it has been misquoted for centuries that most people believe money itself is the root of all ... more

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5. A penny saved is a penny earned.

"Saving in itself is not bad, but the masses are so focused on clipping coupons and living frugally that they miss major opportunities," Siebold explains. "People must reject this nickel-and-dime thinking and focus their mental energy where it belongs: on the big money."

"The masses are programmed from an early age to put the needs of others before their own," says Siebold. "While this sounds like a spirit-driven, high-level philosophy, it's the worst advice you can get when it comes to money. In order to make a lot of money, there is a period of time in the beginning of the wealth-building process where you must focus on yourself and your business in order to make it at an uncommon level." Once you acquire wealth, he says, then you can focus on the needs of others.

"This is another excuse the middle class uses to justify being broke," Siebold explains. "It's as if they're looking for a reason to avoid success by making it seem unattractive. The truth is the more money you have, the more control you have over every aspect of your life, and the fewer problems you have to personally address. While the masses are staying up at night worrying about their problems, millionaires are fast asleep knowing everything will be taken care of."

"This is another excuse the middle class uses to justify being broke," Siebold explains. "It's as if they're looking for a reason to avoid success by making it seem unattractive. ... more

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7 Common Pieces Of Financial Wisdom You Shouldn't Follow

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Has anyone ever told you, "It takes money to make money"?

That's not exactly right.

Steve Siebold, the author of "How Rich People Think" and a self-made multimillionaire who spent nearly three decades interviewing over 1,000 extremely wealthy people, has isolated a handful of financial phrases that seem like common wisdom, but are in fact misguided, ineffective, or just plain wrong.

Click through to find out which of this well-worn advice you shouldn't be following.